At Least Everyone Argued Well
Call me a cynic.
I heard this week the consumer advocates and ARM industry reps go hammer and tongs at the FTC conference on industry practices.
To believe the advocates you’d think that all collectors spend their days threatening dead-broke helpless little old ladies with physical harm if they don’t pay that 15-year-old credit card bill. To believe the agency chiefs, their collectors are angelic financial experts who live to counsel folks that are just a little down on their luck.
Are there money hungry jerks in this business? Are there helpless senior citizens? Are there a lot of good folks doing the tough job of asking people for money that they rightfully owe? Yes, yes and yes.
It felt sometimes like I was observing the American Bar Association’s All-Star Olympic Debate Club. Just about everybody was an attorney. They made their point, they stayed on-point, they knew their stuff, they could be funny, and they could stick in the knife.
The problem was that it was tough to find common ground with such dedicated advocates. As soon as agreement was made, someone would find a sub-clause that was being violated. Compromise wasn’t on the agenda. The FTC has given itself the difficult job of proposing changes that are bound to anger someone.
The FTC is to be commended for organizing a fascinating and informative conference that allowed for venting by industry players. The arm chair psychologist will tell you it helps just to get it out. We’ll see.
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Comments
Comment from Dufball on October 12, 2007 at 2:29PM EST
So each side threw bean bags this go-round instead of rocks at each other. Less pain, same result. It's been my experience that these things are momentarily good eyewash but the politicians will do what is necessary to keep their jobs. They'll deal with the technological updating of the FDCPA for contact purposes, the States will keep their States' Rights & the industry will continue to plug along. Thanks to all of the Industry Representitives for their efforts & time. We need you out there!
Comment from Collection Veteran Since 1964 on October 12, 2007 at 3:06PM EST
I believe the hearings were long overdue and commend the FTC for bringing both sides to at the table. However, and I believe unfortunate, the two days reminded me of the Bankruptcy Review Commission Hearings which I participated. The two opposing sides may never meet in the middle but I believe getting closer will help. I know everyone in the collection industry, which I have been in since 1964 do not condone abuse by debt collectors, collection agencies or collection law firms. However, little is ever mentioned of the few consumer law firms who engage in frivilous law suits to earn money regardless of the debtor or those few so called non profits who have changed from a profession to big business.
Everyone on the panels had something to say and some hopefully laid ground work to continue rather than bashing each other. If the industry both debt collection, debt buyer, and lawyers learned nothing from the Review Commission Hearings back in 1997, then we will all end up with intent but no logic. There is room to move toward the middle if everyone can stop using examples that do not represent the majority of what is done right.
While there are and will be bad apples in the collection industry( and lawyers as well),I believe much has improved since 1967 in our industry but it may be just as important at times to consider the journey rather than the goal.
Comment from paybill on October 15, 2007 at 1:07PM EST
Collection Veteran, You hit the nail on the head with your comment about consumer law firms that will sue anybody for any reason in hopes that agencies settle so they don't have to deal with the time and expense to fight a lawsuit. This practice has to end. We even have our E&O carriers telling us to settle when we have done nothing wrong, incredible. I believe some types of penalties for these frivilous lawsuits against these attorney's should also be included on any recommened FTC changes.